The cost of extending the 2017 tax cuts for households, small businesses, and wealthy individuals enacted under President Donald Trump has expanded to .6 trillion, according to new estimates from Congress’ fiscal scorekeeper.
The Bank of England’s Monetary Policy Committee voted 7-2 to keep interest rates at 5.25 per cent, with Deputy Governor Dave Ramsden and Swati Dhingra voting for a cut to 5 per cent. The BoE hinted at a potential rate cut in June and emphasized the importance of upcoming economic data releases. Governor Andrew Bailey expressed optimism about the direction of inflation.
British services companies reported the strongest upswing in activity in almost a year during April, with the S&P Global UK Services Purchasing Managers’ Index rising to 55.0, its highest level since May 2023. The survey also showed a robust increase in new orders and the biggest acceleration of cost pressures since August. This increase in costs was attributed to a 10 per cent increase in the national minimum wage in April, leading to a slowdown in employment growth. The UK economy is expected to grow at a quarterly rate of 0.4 per cent, pulling further out of last year’s shallow recession. The composite PMI, which combines services and manufacturing data, rose to 54.1 from 52.8 in March, marking a one-year high.
– Collateral lending has become the norm in a loosely regulated banking environment in the world today.
– Extreme wealth inequality is a significant issue globally.
– Risk aversion by the wealthy and the depletion of entrepreneurs’ equity through unproductive debt can compromise the real economy.
– Wealth concentration and extreme inequality can suffocate the real economy and transfer existing wealth from the many to the few.
Fact: Moody’s beat Wall Street estimates for first-quarter profit, with revenue rising 21.5% to .79 billion.
Fact: Business wants to see this year’s Budget focus on tax relief, reducing red tape, and support for upskilling.
The German economy grew more than expected in the first quarter, with gross domestic product rising 0.2 per cent. The economy skirted a recession thanks to the construction sector and exports.
– Large numbers of Cypriots are spending the Easter holidays abroad.
– The number of Cypriots holidaying abroad will be comparable to 2023.
– Cypriot travelers’ top destinations are traditionally Greece followed by the United Kingdom.
– Reservations for summer holidays are in full swing.
– Domestic tourism bookings for the Easter period are relatively limited.
– Overseas visitors bookings for 2024 show a reduction compared to 2023.
– Travel to Cyprus is expected to remain at lower levels due to limited available flights and airlines facing an aircraft shortage.
President Biden is calling for Congress to repeal the 2017 tax cuts and increase corporate tax rates, arguing that the benefits primarily go to big corporations and the wealthy. However, data shows that the 2017 tax cuts and regulatory relief under the Trump administration led to significant increases in real median household income, with the lowest income quintile seeing a 9.4% rise in income in 2019. The poverty level also dropped at the fastest rate since 1966.
Fact: Unemployment in Turkish Cyprus fell to 5.1 per cent in 2023, the lowest level since 2004, and the economy experienced a growth of 13.3 per cent in 2022, the fastest pace since the post-Annan Plan referendum period.